December 14, 2010

Essential Air Service at

Grand Island, Nebraska OST 2002 13983

under 49 U.S.C. 41731 et seq.

ALASKA JUNEAU AERONAUTICS, INC.

DBA

SEAPORT AIRLINES

PROPOSAL TO PROVIDE ESSENTIAL AIR SERVICE

AT

Grand Island, Nebraska

DOCKET 

2002 13983

Alaska Juneau Aeronautics, Inc. dba

SeaPort Airlines

7505 NE Airport Way, Portland, OR. 97217
Company Overview

SeaPort Airlines is a d/b/a of Alaska Juneau Aeronautics*, an FAA certified scheduled 

air service provider with 27 years experience in commercial aviation. Our company’s 

foundation is built on efficient and reliable service to rural communities. Both 

SeaPort Airlines and our sister company Wings of Alaska currently operate routes 

under the Essential Air Service program, as well as un-subsidized operations on 

established competitive routes.

*Alaska Juneau Aeronautics, Inc. is in process of a name change to SeaPort Airlines, Inc. The corporate name and the certificate of public 

convenience and necessity have been already changed, however the request to the FAA for name change for the air carrier certificate currently 

remains pending.

Wings of Alaska is the premier airline serving Southeast Alaska. Providing 

scheduled passenger service, fast freight and charter service between Juneau and 

Skagway, Haines, Hoonah, Gustavus, and weekly flights to Excursion Inlet.

Wings of Alaska grew in reputation and size, becoming one of the most successful 

regional air carriers in Alaska, now comprised of a fleet of seven planes from Cessna 

206 and 207’s to Cessna Grand Caravans.
IT’S ABOUT TIME : SeaPort Airlines currently operates 30 daily 

scheduled flights in five Northwest cities and 32 daily scheduled flights 

in five Mid-South cities. Effective April 19th, 2010 SeaPort Airlines 

began operating 8 daily flights in the Midwest.

EAS 6 Routes

Speculative 1 Route

State Contractual 2 Routes

SeaPort Airlines
Bringing Southeast Alaska Closer Together: Wings of Alaska currently 

operates 38 daily scheduled flights to six Southeast Alaska cities.

Wings of Alaska

EAS 1 Routes

Speculative 5 Routes
SeaPort Airlines operates 7 Pilatus PC-12 aircraft. The PC-12 is a Swiss-built 

pressurized turboprop aircraft typically found in corporate aviation, but utilized by 

SeaPort Airlines in a nine seat commuter configuration. The world's best-selling 

turbine business aircraft, still in production today, the PC-12 can shuttle you with 

comfort and speed with each seat both a window and aisle.

Pilatus, the world market leader in the manufacture of turboprop aircraft and the 

only Swiss company to develop, produce and sell aircraft and training systems all over 

the world.

http://www.pilatus-aircraft.com

OurAircraft
December 14, 2010 Alasks Juneau Aeronautics, Inc. dba SeaPort 

Airlines

Our President

Robert (Rob) L. McKinney:

• Graduate of Purdue University -Aviation Technology, and holds MBA from Ellis College

• Trained and experienced as commercial pilot in jets and turbo props, but always strived for 

opportunities to manage business aspects of flight operations in each company he served.

• In September, 2007, enticed by original investors and founders of SeaPort Airlines to join as 

first employee, and tasked with establishing scheduled commuter airline service from Portland, 

OR to Seattle, WA.

• Currently, a partial owner and President for SeaPort’s three bases of operation – Portland, OR, 

Memphis, TN, and Juneau, AK, and working to establish additional routes and expand schedules 

in each market.

• Holds and utilizes vast knowledge of FAA regulations and has previous experience with Federal 

Regulators. 

“Growing up in a small town, I’m passionate 

about connecting rural America – the fabric of 

our society.”
Whereas many communities have been promised service that has never transpired, 

SeaPort delivers Essential Air Service to seven communities: Excursion Inlet, Alaska, 

Pendleton, Oregon, Jonesboro, Arkansas, El Dorado, Arkansas, Hot Springs, Arkansas, 

Harrison, Arkansas, and Salina, Kansas. Additionally, SeaPort serves Newport, OR and 

Astoria, OR under a combined state and federal grant program. 

In every case, after award, we have started on time, on budget, and with fares either 

at or below that which we outlined in our bid, as compared to so many other airlines 

who place bids with unreasonable fares that are never realized by the traveling 

public.

EAS History
SeaPort proposes 2 direct round trips per day between Grand Island and Kansas City, 6 days per week, 

additionally SeaPort will offer 3 direct round trips per day between Grand Island and Denver, 6 days 

per week. This service level will offer more than enough inventory to provide for the historical traffic of 

the last several years, while keeping capacity “right-sized” and avoiding an unnecessary flooding of 

empty seats and resulting higher operating costs. Please see Exhibit “2” for details. 

SeaPort has constructed the schedule to maximize traffic flow with flights morning, midday and 

evening. SeaPort believes that traffic will increase in year two as the speed and convenience of our 

service become more familiar to the residents of these communities. 

In addition, a daily plane overnight in Kansas City adds reliability to the above schedule 

recommendation similar to the overnight success SeaPort experiences in our other EAS cities.

We are therefore able to offer these communities the best possible fit with:

• Comfortable and fast pressurized Pilatus PC-12 aircraft

• Convenient schedules

• Affordable fares

• A reasonable and sustainable subsidy amount 

Right-Sized for Grand Island
SeaPort Airlines emphasizes customer service and convenience, and in so doing our platform is 

reminiscent of commercial air service of the past in that our passengers only need to arrive 20 

minutes prior to departure from any of our terminals.

In Kansas City and Denver, SeaPort would use the business aircraft center for an enhanced travel 

experience. From either terminal we will provide complimentary shuttle van service to and from 

the main terminal for those passengers needing to connect to, or returning from, more distant 

destinations. This model has proven itself well at our hub in Portland, OR, Memphis, TN, and 

Kansas City, MO and is no less convenient than a typical gate change—only with this one you get 

a complimentary shuttle ride. 

Further, a no-TSA model will offer the communities tremendous appeal for quick trips to and 

from Kansas City, or other potential major market connections to be served by SeaPort. Finally, a 

no-TSA model has the greatest potential to draw business and leisure traffic from San Diego and 

Phoenix that would otherwise travel by highway if a traditional TSA-restricted airline was the only 

flight option. 

Lastly, the $79 and $109 dollar fares in our proposal is an average fare. Travel to 

Kansas City or Denver will be as low as $59.00 one way. This fare is far less than the 

current operator. 

SeaPort’s Proposed Plan
SeaPort Airlines is unique in that it proactively markets to travelers the ease and convenience of 

by-passing TSA security screening. Below are a few inherent cost saving benefits and customer 

benefits passed to you the airport when partnering with a carrier such as SeaPort Airlines:

•Lower fares thanks to no gate fees

•Increase reliability in arrival and departure times

•Quicker turn times

•Arrive just 20 minutes before departure, board, and go

•No Body Scanners. No rubber gloves. No need to take your shoes off.

•Complimentary shuttle service to and from the main terminal

No lines, never any waiting

WE FOUND WHAT AIR TRAVEL LOST:

EASE AND CONVENIENCE
 March 2010 full GDS connectivity (Sabre, Worldspan, Apollo, Galileo, and Amadeus)

January 2011 full Online Travel Agency availability, (Expedia, Orbitz, Travelocity)

Interline agreement with USAirways

 Reservations available online at SeaPortAirlines.com, toll-free at 888.573.2767, or 

through local travel agents

 Low Fares thanks to low operating costs and efficient aircraft equipment

 High-frequency, non-stop daily service

 Customer focused bringing the convenience of a private plane to 

the average traveler for the same cost as commercial airlines. 

Efficiency & Reach
December 14, 2010

Current Service

Great Lakes Aviation is the current air service provider for Grand Island, Nebraska with nonstop to Denver. Nonrefundable fares, range from $109.00 to $299.00 per segment based on availability and time of booking.

SeaPort Airlines is exploring greater connection options for 

Grand Island travelers to Kansas City.

What can the Grand Island Airport Authority expect from 

SeaPort Airlines:

 Notification of any fare/schedule changes 

 Community involvement through 

advertising/marketing

 A cohesive partnership focused on economic 

development and increased load factors

 Affordable fares

 A hassle-free travel experience for your 

community
EAS Testimonial

Larry Dalrymple – Airport Manager :

“Eastern Oregon Regional Airport at Pendleton had been struggling since schedule changes following 9/11 served by a 

carrier flying 37 seat aircraft. Low passenger count attributed to poor schedule, which then contributed to poorer 

passenger count. The carrier's solution was to bring in larger aircraft and fly to a different hub. The Airport and 

community balked at this suggestion and went in search of alternatives. The solution found through the EAS process 

was SeaPort Air flying a 9 passenger Pilatus, that would eliminate the need for TSA security as well as mandatory ARFF 

standby, saving the Airport personnel costs in an already short budget. The passengers have welcomed the new 

service, much better schedule, and are elated with "no security check" and stand by time. Passengers today will say, "I 

love the service", "great customer service", and "I'm sure glad I finally tried it, cause I'll be back".

In our particular market, the 9 passenger aircraft is perfect, and SeaPort Air provides the schedule, the professionalism, 

and customer service we need and desire.”

Pendleton Regional Airport
December 14, 2010 Alasks Juneau Aeronautics, Inc. dba SeaPort 

Airlines

Luci Larson – Former Mayor of the city of Salina Kansas & owner of Action Travel:

The Department of Transportation (DOT) announced on the selection of SeaPort Airlines as Salina’s new essential air 

service provider. Service to Salina from Kansas City will start as early as April 19th with three daily roundtrip flights 

Sunday through Friday. 

“I understand the importance of having dependable, reliable air service with an affordable cost. Not only will SeaPort 

Airlines meet these needs, but excel by providing great customer service, a high level of community involvement and 

an eagerness to become a Salina partner.” Says Luci Larson - former Mayor of the city of Salina and owner of Action 

Travel. The letter supports a few key deliverables that only SeaPort Airlines can support, such as: greater frequency, a 

9-seat “right sized” aircraft, affordable fares, military/government fares, and an active community marketing plan. “I 

applaud their entrepreneurship and look forward to our working relationship. Their presence here in the Midwest is a 

win-win situation for all of us. The "door-to-door" service they will provide will be truly appreciated by all passengers. 

Want to travel like rock star? Fly SeaPort Airlines!” Says former Mayor Larson.

EAS Testimonial

Salina Municipal Airport
Customer Feedback

Ruth Ann Smith – Hot Springs to Memphis:

“Two hours before the flight I booked my ticket to Memphis from Hot Springs. Wow! What a surprise; it was simple, 

convenient, great price, and impeccable service. It far exceeded my expectations and I will be flying to Memphis on 

SeaPort Airlines instead of driving from now on. The customer service was fabulous!”

Catherine Martin – Memphis to Harrison:

“I have never had such a positive experience connected with any airline. I read about Seaport Air last October when 

they opened the Mid-South Route, but didn’t have the chance to fly until March. Usually the dread of the process 

comes then you just grin and bear it; however, with SeaPort Air I could arrive 15 minutes early. The hassle free no TSA 

is wonderful and made me feel special. I have flown twice in the last 2 months and the customer service from start to 

finish is outstanding. I will be a regular customer and have already recommended the airline to several associates. 

Thank you, SeaPort Air, for making me feel like a queen!”

Barbara Covell – Portland to Newport:

“This is a class operation, very professional and the staff provide the kind of customer service that most people can 

only dream about. I have flown several times in order to avoid the LONG car trip from the Oregon central coast to 

Portland airport. Today my husband had to get to the emergency room at Portland VA Medical Center. The staff and 

crew actually held the flight in Newport while we made haste to get there. If that wasn't enough, they had a taxi 

waiting when he arrived at Portland airport. Many, many thanks!”
December 14, 2010 Alasks Juneau Aeronautics, Inc. dba SeaPort 

Airlines

Community Involvement
Recent News

Economy doesn't ground airline start-ups (click here)

USA Today :: 11/16/2009

“Too many small communities are ignored by large carriers.” “I have built a career giving service to 

small rural communities that are neglected by everybody else.” Rob McKinney

Scheduled air service returns to Region 8 (click here) 

KAIT TV:: 10/26/2009

SeaPort Airlines will link Memphis and four Arkansas cities » The ... (click here) 

Gloria Levston of Signature Flight Support adds fuel to a SeaPort Airlines Pilatus PC12 plane at the 

SeaPort facility at Memphis International Airport The ...

For a list of SeaPort news articles visit http://www.SeaPortAir.com/press
Recent SeaPort News

‘This is a great day for El Dorado’

SeaPort Airlines welcomed as new air service provider

By: John Worthen

Published: 10/28/2009

Approximately 50 people gathered Tuesday morning at the South Arkansas Regional Airport terminal to celebrate the return of air service to El Dorado. 

Representatives from SeaPort Airlines, who arrived on a flight from Memphis International Airport to commemorate the occasion, were greeted with cheers and smiles by community members and 

local officials. 

The Portland, Ore.-based company will offer round-trip flights between El Dorado and Memphis on the Swiss-built Pilatus PC-12, a pressurized turbo-prop airplane. Departure times from the SARA 

are 4:10 a.m., 11:20 a.m., and 8:20 p.m., according to SeaPort’s website. 

SeaPort will also operate round-trip flights to Memphis from Harrison, Hot Springs and Jonesboro. 

These communities, along with El Dorado, have been without regular service since 2008, when Air Midwest, a subsidiary of Mesa Airlines, pulled out of the markets. SeaPort beat out several 

companies that submitted proposals to the Department of Transportation and signed a two-year contract to provide the service for a $6,047,789 federal subsidy. The Essential Air Services program 

subsidizes airlines to provide service that wouldn’t be profitable on the open market. 

SeaPort officially opened Monday in El Dorado with a 4:30 a.m. flight from SARA to Memphis International. At the ceremony Tuesday, local officials touted SeaPort as a quality airline that will help 

El Dorado’s economic engine hum. 

Jeff Teague, chairman of the El Dorado Airport Commission, called the day a “bright one,” despite cloudy, mist-filled skies that had the SARA socked in. 

Getting this airline “has been an arduous task, but we got the best service we could have,” Teague said. “Transportation is the key issue in economic development, and not having air service in El 

Dorado for the past year or so has really not been a good thing. And now, with all that’s going on in El Dorado, with the conference center and the new high school, (Sea-Port’s arrival) is just the 

icing on the cake.” 

Kent Craford, chief executive officer of SeaPort, called Tuesday “an exciting day for us at SeaPort. We feel that our small nine-passenger airplane is a perfect fit for El Dorado’s air service needs. And 

the fact that we will be offering three trips a day allows for better connection service and same day travel opportunities to Memphis and beyond. We are your hometown airline.” 

El Dorado Mayor Mike Dumas spoke highly of SeaPort officials and said he looks forward to working with them throughout their tenure here. 

“This is a great day for El Dorado,” Dumas said. “We have been working on this for more than a year, and it’s great to finally have air service back in El Dorado. We welcome you, SeaPort, and we 

thank you for your service.” 

More information and reservation information is available by logging on to the SeaPort Web site at www.seaportair.com. 
Rob McKinney

President

SeaPort Airlines

7505 NE Airport Way

Portland, OR 97218

(971) 340-1711

www.SeaPortAirlines.com

SeaPort welcomes this opportunity to be chosen to provide essential air 

service at Grand Island, Nebraska for the next two year period. We bring a 

fresh approach, and believe we have presented a proposal that will meet the 

EAS needs of the communities at reasonable subsidy levels. Thank you for 

your consideration. 

Respectfully submitted,
Alaska Juneau Aeronautics, Inc. d/b/a SeaPort Airlines

Essential Air Service Proposal

Docket OST-2002 13983

Annual Subsidy Requirement

May 2011 - April 2012

Exhibit 1A

Kansas City Denver

Factor GRI-MCI GRI-DEN

Revenue:

 Passenger:

 Forecasted Passengers 3,500 10,500

 Average Revenue / Pax:

 Current: 2011 $ 79.00 $ 109.00

 Revenue / Pax Change 1.00% 1.00%

 Average Revenue / Pax $ 79.79 $ 110.09

 Passenger Revenue $ 279,265 $ 1,155,945

 Other Revenue:

 Ratio to Passenger Revenue 1.00% 1.00%

 Other Revenue $ 2,793 $ 11,559

 Total Revenue $ 282,058 $ 1,167,504

Operating Expenses

 Completed Block Hours 1,301.12 2,736.00

 Direct

 Flight Crews $ 74.10 96,413 202,738

 Fuel

 Gallons / Block Hour 74

 Into Plane Cost / Gallon $ 6.00

 Fuel Cost / Block Hour $ 444.00 577,697 1,214,784

 Insurance $ 51.00 66,357 139,536

 Maintenance $ 211.20 274,797 577,843

 Aircraft Lease $ 200.00 260,224 547,200

 Total Direct $ 1,275,488 $ 2,682,101

 Indirect Expense 31.00% 395,401 831,451

 Total Operating Exp $ 1,670,889 $ 3,513,552

Return 5.00% 83,544 175,678

Total Economic Cost $ 1,754,433 $ 3,689,230

Surplus / (Deficit) $ (1,472,375) $ (2,521,726)

Annual Subsidy $ 1,472,375 $ 2,521,726

Completed Departures 1,216 1,824
Alaska Juneau Aeronautics, Inc. d/b/a SeaPort Airlines

Essential Air Service Proposal

Docket OST-2002 13983

Annual Subsidy Requirement

May 2012 - April 2013

Exhibit 1B

Kansas City Denver

Factor GRI-MCI GRI-DEN

Revenue:

 Passenger

 Forecasted Passengers 3,675 11,025

 Average Revenue / Pax

 Estimate: 2012 $ 79.79 $ 110.09

 Revenue / Pax Change 0.00% 0.00%

 Average Revenue / Pax $ 79.79 $ 110.09

 Passenger Revenue $ 293,228 $ 1,213,742

 Other Revenue:

 Ratio to Passenger Revenue 1.00% 1.00%

 Other Revenue $ 2,932 $ 12,137

 Total Revenue $ 296,160 $ 1,225,879

Operating Expenses

 Completed Block Hours 1,301.12 2,736.00

 Direct

 Flight Crews $ 75.58 98,341 206,792

 Fuel

 Gallons / Block Hour 74

 Into Plane Cost / Gallon $ 6.15

 Fuel Cost / Block Hour $ 455.10 592,140 1,245,154

 Insurance $ 51.00 66,357 139,536

 Maintenance $ 221.76 288,536 606,735

 Aircraft Lease $ 200.00 260,224 547,200

 Total Direct $ 1,305,598 $ 2,745,417

 Indirect Expense 31.00% 404,735 851,079

 Total Operating Exp $ 1,710,333 $ 3,596,496

Return 5.00% 85,517 179,825

Total Economic Cost $ 1,795,850 $ 3,776,321

Surplus / (Deficit) $ (1,499,690) $ (2,550,442)

Annual Subsidy $ 1,499,690 $ 2,550,442

Completed Departures 1,216 1,824 
Alaska Juneau Aeronautics, Inc. d/b/a SeaPort Airlines

Essential Air Service Proposal

Docket OST-2002 13983

Proposed Departure Schedules

May 2011 - April 2013

Exhibit 2

Sched Sched Sched Comp

Sched Block Sched Block Block Sched Comp Block

City Block Sched Hours / Freq / Hours / Hours / Seg / Comp Seg / Hours /

Destination Pair Time Seg Seg Week Week Year Year Factor Year Year

MCI GRI 0850

MCI 0954 1 1.07 6 6.42 333.84 312 97.50% 304 325.28

MCI 1015

GRI 1119 1 1.07 6 6.42 333.84 312 97.50% 304 325.28

GRI 1520

MCI 1624 1 1.07 6 6.42 333.84 312 97.50% 304 325.28

MCI 1645

GRI 1749 1 1.07 6 6.42 333.84 312 97.50% 304 325.28

 4.28 25.68 1,335.36 1,248.00 1,216.00 1,301.12

DEN GRI 0510

DEN 0640 1 1.50 6 9.00 468.00 312 97.50% 304 456.00

DEN 0700

GRI 0830 1 1.50 6 9.00 468.00 312 97.50% 304 456.00

GRI 1140

DEN 1310 1 1.50 6 9.00 468.00 312 97.50% 304 456.00

DEN 1330

GRI 1500 1 1.50 6 9.00 468.00 312 97.50% 304 456.00

GRI 1810

DEN 1940 1 1.50 6 9.00 468.00 312 97.50% 304 456.00

DEN 2000

GRI 2130 1 1.50 6 9.00 468.00 312 97.50% 304 456.00

 6 9.00 6 54.00 2,808.00 1,872.00 1,824.00 2,736.00
Alaska Juneau Aeronautics, Inc. d/b/a SeaPort Airlines

Essential Air Service Proposal

Docket OST-2002 13983

Performance Summary

May 2011 - April 2012

Exhibit 3A

Kansas City Denver

GRI-MCI GRI-DEN

Performance:

Rev Block Hours

 Scheduled 1,335.36 2,808.00

 Completion % 97.50% 97.50%

 Completed Block Hours 1,301.12 2,736.00

Rev Departures

 Scheduled 1,248 1,872

 Completion % 97.50% 97.50%

 Completed Departures 1,216 1,824

Rev Passengers

2011 3,500 10,500

 Forecasted Growth Rate 0.00% 0.00%

 Total Passengers

 Average Segment Share 100.00% 100.00%

 Segment Passengers 3,500 10,500

 Available Seats 10,944 16,416

 Average Load Factor 31.98% 63.96%

 Average Pax / Flight  2.9  5.8
Alaska Juneau Aeronautics, Inc. d/b/a SeaPort Airlines

Essential Air Service Proposal

Docket OST-2002 13983

Performance Summary

May 2012 - April 2013

Exhibit 3B

Option 1

Kansas City Denver

GRI-MCI GRI-DEN

Performance:

Rev Block Hours

 Scheduled 1,335.36 2,808.00

 Completion % 97.50% 97.50%

 Completed Block Hours 1,301.12 2,736.00

Rev Departures

 Scheduled 1,248 1,872

 Completion % 97.50% 97.50%

 Completed Departures 1,216 1,824

Rev Passengers

 2012 Est Pax 3,500 10,500

 Forecasted Growth Rate 10.00% 10.00%

 Total Passengers

 Average Segment Share 100.00% 100.00%

 Segment Passengers 3,850 11,550

 Available Seats 10,944 16,416

 Average Load Factor 35.18% 70.36%

 Average Pax / Flight  3.2  6.3